MCQ on Ledger

MCQ on Ledger (Question no. 1 to 100)

1. A ledger is called a book of

(a) Primary entry

(b) Secondary entry

(c) Final entry

(d) None of these

2. A ledger account is prepared from

(a) Events

(b) Transactions

(c) Journal

(d) None of these

3. The debit balance of a personal account indicates:

(a) Amount receivable

(b) Amount payable

(d) None of these

4. The balance of cash account indicates

(a) Net Income

(b) Cash in hand

(d) Total cash paid

5. The trial balance shows

(a) Both debit and credit balance

(b) Only debit balance

(d) None of these

6. Business transactions are recorded

(a) In chronological order

(b) Weekly

(d) Any of these

7. The credit balance of bank account indicates

(a) Bank balance

(b) Amount payable to bank

(d) None of these

8. Which of following accounts will invariably have a debit balance?

(a) Account receivable

(b) Account payable

(d) Bank account

9. Which of the following accounts will invariable have credit balance?

(a) Current account of proprietor

(b) Account receivable

(c) Account payable.

(d) None of these

10. Personal account of a customer is likely to have

(a) Only debit entries

(b) Only credit entries

(c) Both debit and credit entries.

(d) None of these

11. Ledger is a book in which

(a) Real and nominal account are maintenance.

(b) Real and personal account are maintained

(d) None of above

12. If you required to prepare the ledger account of a creditor, on which side of ledger account will you show.

(a) Opening credit balance

(b) Closing credit balance

(d) Closing debit balance

13. The column of ledger which links the entry with journal is

(a) L.F. Column

(b) J.F. Column

(d) Credit Column

14. Putting on the credit side of an account is written as

(a) Being

(b) To

(d) From

15. Nominal account having debit balance represents

(a) Income/Gain

(b) Expenses/Loss

(d) Assets

16. Account having credit balance is closed by writing

(a) To balance c/d

(b) To balance b/d

(d) By balance b/d

17. When the total of debit and credit are equal, it represents

(a) Debit balance

(b) Credit balance

(d) Current balance

18. Which of the following account is increased by credit entries?

(a) Sales return a/c

(b) bank overdraft

(d) Purchase a/c

19. The process of transferring the debit and credit items from a journal to their respective account in the ledger is termed as?

(a) Balancing

(b) Posting

(d) Entry

20. Credit means?

(a) Entries on the right hand side.

(b) A decrease in liabilities

(d) An increase in assets

Answer:

11.C , 12.A , 13.B , 14.C , 15.B , 16.C , 17.C , 18.B , 19.B , 20.A.

21. Which of the following item is not increased in the cash account?

(a) Purchase of 20000

(b) Sale of 5000

(d) Credit sale of 20000

22. Book of account when transaction related to a particular person on things are recorded.

(a) General Journal

(b) Trial balance

(d) Worksheet

23. When a liability is reduced or decreased, it is recorded on the?

(a) Right or debit side of account

(b) Left or debit side of account

(d) Right or credit side of account

24. General ledger is also known as?

(a) Book of original entry

(b) T-Account

(d) Voucher

25. The records that are kept for the individual asset, liability, equity, revenue, expenses and drawing components are known as

(a) Journals

(b) Vouchers

(d) Statements

26. Purchase return account always shows a _______ balance.

(a) Debit

(b) Credit

(d) None of these

27. The next step often preparation of ledger is the preparation of?

(a) Trial balance

(b) Final account

(d) Balance sheet

28. Discount account will always have

(a) Only debit balance

(b) Nil balance

(d) Debit or credit balance

29. If debit side of bank account is greater than credit side it represents?

(a) Cash at Bank. (b) Bank Loan

30. The payment to a creditor will?

(a) Increase one asset and decrease another. (b) Decrease an asset and decrease owner’s equity

Answer:

21.D , 22.A , 23.B , 24.B , 25.C , 26.B , 27.A , 28.B , 29.A , 30.C.

31. Cash account is a

(a) Personal account. (b) Real account

32. The next step after preparation of Ledger is the preparation of __ :

(a) trial balance. (b) final accounts

33. Purchase Return Account always shows a ______ balance.

(a) debit. (b) credit

34. Opened an account with ~ 5,000 on 3/12109. He deposited ~ 1,000 on 7/12109. He withdraw ~2,000 on 15/12109 and deposited a cheque of ~ 10,000 on 20/12109. What is the balance on 31/12109?

(a) ~ 18,000.

(b) ~ 14,000

(d) None

35. Which of the following is known as “Principal Books of Accounts”?

(a) Ledger.

(b) Journal

(d) BalanceSheet

36. A book wherein various accounts are opened is called____________?

(a) Subsidiary books.

(b) Journal

(d) Trial Balance

37. Which of the following statements is/are true ?

(a) A sale of an asset is recorded.

(b) Total of Return Outward Book is debited

in the Sales Book. to Return Outward Account

(d) Cash Book is a subsidiary book as well as a ledger

38. Credit balance of ledger is

(a) a revenue or an asset.

(b) a revenue or a liability

(d) an expense or a liability

39. Which of the following statement is correct?

(a) All Entries except cash transactions (b) Purchase book records all the purchases

can be recorded through Journal. whether cash or credit.

40. If the owner withdraws the amount from the business for personal use, then which Nc is to be debited?

(a) Capital Nc. (b) Drawings Nc

Answer:

31.B , 32.A , 33.B , 34.B , 35.A , 36.C , 37.D , 38.B , 39.A , 40.B.

41. Which of the following is a real account?

(a) Building Nc. (b) Capital Nc

42. What will be the Journal Entry when goods purchased are returned?

(a) Creditors A/c Dr. To Purchase Return A/c. (b) Purchase Return A/c Dr. To Creditors A/c

43. After recording the transactions and’ events in journal and subsidiary books, they will be transferred to:

(a) Profit and Loss Account. (b) Balance Sheet

44. Which of the following is the closing balance of a ledger account?

A. Balance c/d B. Balance b/d

C. Balance e/d D. Balance f/c

45. Which of the following accounts are closed at the end of an accounting period?

A. Nominal accounts B. Balance sheet accounts

C. Real accounts D. None of them

46. Which of the following is a real account?

A. Office equipment B. Rent expenses

C. Rent income D. Insurance expense

47. ___________ helps business to classify transactions according to their nature?

A. General journal B. Real accounts

C. Ledger accounts D. Cash accounts

48. Building account is classified as _________ account?

A. Nominal B. Real

C. Cash D. Capital

49. The real accounts are accounts of Assets, liabilities and ___________?

A. Expenses B. Revenues

C. Capital D. Drawing

50. At the end of the accounting year all the nominal accounts of the ledger book are:

(a) Balanced but not transferred. (b) Not balanced and also the balance is not

to profit and loss account. transferred to the profit and loss account

transferred to the balance sheet. to the profit and loss account.

Answer:

41.A , 42.A , 43.C , 44.D , 45.B , 46.D , 47.B , 48.C , 49.D , 50.D.

51. Salary payable to employees ~ 50,000 is credited to ________ _

(a) cash alc. (b) salary alc

52. Posting is the process of____________?

(a) Posting the letters in drop box. (b) Posting suitable person to a suitable job

contained in the ledger

53. Journal and ledger records transactions in:

(a) A chronological order only. (b) An analytical order and chronological order respectively.

54. Which of the following statement is incorrect?

(a) All personal and real account (b) The balances of nominal accounts are transferred

ultimately show balance. to profit and loss account

in ledger books for each account.

(d) Rent is a personal account but

outstanding rent is a nominal account.

55. At the end of the year, a ledger account has credit balance. The credit balance of the ledger is written as:

(a) “To Balance c/d” on the debit side. (b) “By Balance c/d” on the credit side

56. The left hand side of account is referred to as?

(a) The Balance. (b) A Debit

57. Excess of Debit side over Credit side is called?

(a) Debit Balance. (b) Credit Balance

58. Which item will appear on the credit side of ledger account?

(a) Cash received. (b) Purchases

59. The process of transferring the debit and credit items from a journal to their respective account in the ledger is termed as?

(a) Balancing. (b) Posting

60. Ledger is a book of?

(a) Original entry. (b) Final entry

Answer:

51.C , 52.C , 53.C , 54.D , 55.A , 56.B , 57.A , 58.C , 59.B , 60.C.

61. The account is a device used by the accountant to record?

(a) Increase. (b) Decrease

62. The balance of cash account indicates?

(a) Net cash on hand. (b) Net loss for the period

63. Which of the following item is not included in the Cash account?

(a) Purchases of Rs. 10,000. (b) Sales of Rs.5,000

64. Which accounts belong in the accounts payable ledger?

(a) Customer Accounts. (b) Vendor Accounts

65. An account is said to have a debit balance if?

(a) The amount of debit exceeds (b) There are more entries on the debit side

the amount of the credits. than on the credit side

period was posted on the debit side

66. Book of account where transaction related to a particular person or thing are recorded?

(a) General Journal. (b) Trial balance

67. When a Liability is reduced or decreased, it is recorded on the?

(a) Right or debit side of the account. (b) Left or debit side of the account

68. General Ledger is also known as?

(a) Book of original entry. (b) T Account

69. The records that are kept for the individual asset, liability, equity, revenue, expense, and drawing components are known?

(a) Journals. (b) Vouchers

70. The respective normal account balances of Sales, Sales Returns and Allowances, and Sales Discounts are?

(a) Credit, Credit, Credit. (b) Debit, credit, debit

Answer:

61.C , 62.A , 63.D , 64.B , 65.A , 66.C , 67.B , 68.B , 69.C , 70.C.

71. A ledger is called a book of.

(a) Primary entry (b) Final entry

72. From which of the following is a ledger account prepared.

(a) Transactions. (b) Journal

73.The process of transferring of items from a journal to their respective ledger accounts is called as.

(a) Entry. (b) Arithmetic

74. The ledger column that links the entry with the journal is called as.

(a) J.F column. (b) L.F column

75. The left hand side of the ledger account is referred to as.

(a) Footing. (b) Credit side

76. Ledger is a principal book that contains.

(a) Real accounts only. (b) Personal accounts only

77. Accounts that have credit balance are closed by using the statement.

(a) By balance b/d. (b) By balance c/d

78. An account is having debit balance is established when.

(a) The last entry of the accounting (b) There are more entries on the debit side

period was posted on the debit side. than on the credit side

79. Which of the following item will be appearing on the credit side of the ledger account?

(a) Discount received. (b) Cash received

80. Among these, which item is used as the base for preparing trial balance?

(a) Cash account. (b) Balance sheet

Answer:

71.B , 72.B , 73.D , 74.A , 75.C , 76.C , 77.D , 78.C , 79.A , 80.D.

81. Which of the following is the normal balance of a rent expense account?

A. Credit balance B. Cash balance

C. Overdraft D. Debit balance

82. Which of the following statements is incorrect regarding capital account?

A. Debit increases the capital account balance B. Credit increases the capital account balance

C. Fresh capital increases the capital account balance D. Net income increases the capital account balance

83. The normal balance of liability account is____________?

A. Debit balance B. Credit balance

C. Cash balance D. Neither debit nor credit balance

84. The normal balance of asset account is____________?

A. Credit balance B. Debit balance

C. Cash balance D. Neither debit nor credit balance

85. The normal balance of capital account is_____________?

A. Credit balance B. Debit balance

C. Cash balance D. Neither debit nor credit balance

86. If debit balance is greater than creadit balance then the account blance will be__________?

A. Credit balance‌ ‌ B. Debit and credit balance

C. Cash balance D. Debit balance

87. Which of the following is known as the base for preparing trial balance?

A. Journal B. Cash account

C. Ledger account D. Balance sheet

88. _________ will be credited if goods are given as charity?

A. Cash B. Charity

C. Purchases D. Sales

89. If debit side of a bank account is greater than credit side it indicates which of the following?

A. Cash at bank B. Bank understatement

C. Bank overdraft D. Balance overstatement

90. If credit side of a bank account is greater than the debit side, it indicates which of the following?

A. Bank overdraft B. Cash at bank

C. Bank balance D. Current Asset

Answer:

81.D , 82.A , 83.B , 84.B , 85.A , 86.D , 87.C , 88.C , 89.A , 90.A.

91. Revenue and expense accounts are referred as______________?

A. Nominal accounts B. Real account

C. Cash accounts D. Banks account

92. An account records the ___________ in the balance of an item?

A. Increase B. Decrease

C. Increase or decrease D. Appreciation

93. Transferring entries from journal to ledger account is commonly known as____________?

A. Recording B. Transferring

C. Posting D. Entry making

94. ________ is the common base for preparing a trial balance?

A. Ledger accounts B. General Journal

C. Specialized journals D. Balance sheet

95. Trial balance is prepared to check accuracy of_______________?

A. Ledger accounts balances B. Balance sheet balances

C. Income statement balances D. Cash flow statement balances

96. The process of transferring the debit and credit items from a Journal to their respective accounts in the ledger is termed as

A.Posting B.Purchase

C.Balancing of an account D.Arithmetically accuracy test

97. The next step after preparation of Ledger is the preparation of __ :

A. trial balance B. final accounts

C. cash flow statement D. balance sheet

98. Purchase Return Account always shows a ______ balance.

A. debit B. credit

C. either A. or B. D. none

99. Opened an account with ~ 5,000 on 3/12109. He deposited ~ 1,000 on 7/12109. He withdraw ~2,000 on 15/12109 and deposited a cheque of ~ 10,000 on 20/12109. What is the balance on 31/12109?

A. ~ 18,000 B. ~ 14,000

C. ~ 4,000 D. None

100. Which of the following is known as “Principal Books of Accounts”?

A. Ledger B. Journal

C. Trial Balance D. BalanceSheet

Answer:

91.A , 92.C , 93.C , 94.A , 95.A , 96.A , 97.A , 98.B , 99.B , 100.A.

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